Law No. 82-D/2014 - Green Tax Reform

The Portugal carbon tax is an excise tax under the special taxes on consumption (Codigo dos Impostos Especiais de Consumo). The tax rate is determined annually based on the average EU ETS allowance in the preceding year. For EU ETS-covered coal generators their carbon tax rate is based 50% of the difference between the full carbon tax rate and a target carbon price of EUR25/tCO2. The tax was introduced as part of wider package of green tax reforms and serves as a complementary policy measure to the EU ETS. Portugal also levies a flat EUR2/ticket carbon charge on air and sea travel (Taxa de carbono sobre viagens aéreas).

Source: World Bank Carbon Pricing Dashboard

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